Seeing further financing opportunity with the firm, mCommerceBank has sweetend the deal further. The bank has agreed to provide loan of $2102, at a rate of 8% per annum, and payments of $95.05 per month (at the end) till the loan is repaid completely. (i) Enter the values of Present Value, Type and PMT in cells C59, C61 and C62 respectively. (ii) Write a formula in cell C58 to compute the monthly interest rate charged by the bank. (iii) Write a formula in cell C64 to compute the loan duration (number of months).
Seeing further financing opportunity with the firm, mCommerceBank has sweetend the deal further. The bank has agreed to provide loan of $2102, at a rate of 8% per annum, and payments of $95.05 per month (at the end) till the loan is repaid completely. (i) Enter the values of Present Value, Type and PMT in cells C59, C61 and C62 respectively. (ii) Write a formula in cell C58 to compute the monthly interest rate charged by the bank. (iii) Write a formula in cell C64 to compute the loan duration (number of months).
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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8. Seeing further financing opportunity with the firm, mCommerceBank has sweetend the deal further.
The bank has agreed to provide loan of $2102, at a rate of 8% per annum, and payments of $95.05 per month (at the end) till the loan is repaid completely.
(i) Enter the values of Present Value, Type and PMT in cells C59, C61 and C62 respectively.
(ii) Write a formula in cell C58 to compute the monthly interest rate charged by the bank.
(iii) Write a formula in cell C64 to compute the loan duration (number of months).
Transcribed Image Text:A
64
65
B
Annualized Rate (APR)
Monthly Rate
Present Value (PV)
Future Value (FV)
Type
PMT
с
(i) Enter the values of Present Value, Type and PMT in cells C59, C61 and C62 respectively.
(ii) Write a formula in cell C58 to compute the monthly interest rate charged by the bank.
55 (iii) Write a formula in cell C64 to compute the loan duration (number of months).
56
57
58
59
60
61
62
63
Loan duration
(Number of months)
51
52 8. Seeing further financing opportunity with the firm, mCommerceBank has sweetend the deal further.
53 The bank has agreed to provide loan of $2102, at a rate of 8% per annum, and payments of $95.05 per month (at the end) till the loan is repaid
54 completely.
D
8%
E
0
F
G
Correct Answer
H
Loan duration
(Number of months)
24.00
J
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